Real estate transactions in Florida can be complex and you may find yourself in a situation where you are not sure if what is happening is normal or a red flag that should cause you to question the deal.
Here are some red flags for both buyers and sellers. These apply to residential and commercial transactions.
Red flags for buyers
Be careful about deals that seem too good to be true. In most situations, you will not find the perfect home in the perfect location for the perfect price.
If the buying price seems unreasonably low for a great home, there is a fair chance the home has undisclosed major issues, such as problems with the foundation, water damage or termites.
When you are browsing real estate websites, check to see if a home was listed, removed and then relisted. While there might be a valid reason, a relisted home could also mean that someone was ready to purchase the home and then discovered major issues. Learn exactly why the home was relisted before seriously considering it an option.
Pay attention to the attitude of the seller. Do they seem disorganized or rushed? Or are they willing to be patient and give you time to ask questions and think about the decision? A seller that appears to be in a rush to sell the home should be a cause for concern.
A seller who does not have legitimate mortgage papers, permits or other documentation is another red flag. In a worst-case scenario, the seller could be committing fraud and not be the home’s true owner. Never wire or deposit money without legal purchase agreement and double check to make sure you are sending it to the right person.
Red flags for sellers
When you are selling the home, you do not have to worry about discovering issues with the property itself. Your red flags are going to come from the buyer or your real estate agent.
Having a lot of showings but no offers is a sign that something may be wrong. One reason could be that your home is overpriced.
Your real estate agent could also not present you with the offers. Talk with your agent and find out the reason why you are getting no offers. Consider adjusting your expectations and lowering your price or taking other steps to increase your selling chances.
Perhaps you receive offers but they are all well below the selling price. Sometimes this is simply the result of buyers who are using lowballing as a negotiation tactic but it could be a sign that your asking price is too high. Have an honest conversation with your agent about potentially adjusting your pricing.
Beware of buyers without pre-approval to buy your home. Although buyers are not required to obtain pre-approval, you can ask your real estate agent to only present you with pre-approved buyers.
The best way to handle many of these situations is to speak with the other party and address the issue directly. Sometimes it is simply a misunderstanding.
If that does not work and you are still feeling unsure about the transaction, it may be time to seek professional advice.
